The Department of Revenue within the state of Arizona is charged with recovering and returning unclaimed property to the rightful owner. Unclaimed property can range from abandoned bank accounts, stock certificates and safe deposit boxes to cars, boats and real estate.
Take the time to learn about some of the terms commonly used when dealing with unclaimed property in Arizona so that you can keep your business in compliance. Here are some of those terms along with some quality resources to help get you started.
The holder, according to Arizona state unclaimed property law, refers to the individual, business, organization or other entity that is in possession of unclaimed property.
Electronic reporting is a method of reporting whereby the holder downloads compatible software, fills in the appropriate information recording the unclaimed property (including the nature of the property and the rightful owner), and submits it to the state of Arizona. This process eliminates paperwork and expedites reporting.
Arizona Unclaimed Property
site for additional information on electronic reporting and the policies and procedures that a holder must follow within the state of Arizona.
Presumptions of abandonment
Presumptions of abandonment are legal guidelines that the state of Arizona follows to determine when a piece of property may be deemed unclaimed or abandoned. The state then has the right to claim that property in an effort to return it to the rightful owner. The timeline for abandonment varies depending on the nature of the property in question. For instance, traveler's checks are considered abandoned after 15 years while a money order is considered abandoned after seven years.
Penalties, in terms of Arizona unclaimed property law, refer to the amount of interest that may be charged to a business for failing to comply with the unclaimed property law. Generally this penalty is between 18% and 25%. The individual in charge of reporting may also be charged with a misdemeanor crime.
Unclaimed property list
An unclaimed property list refers to a document that lists and details tangible unclaimed property in the possession of the city, county or state. These lists are published in the hopes of reuniting owners with their property. However, after a certain amount of time, these items may be auctioned to the highest bidder. The proceeds then go to the city or state government.